Given the high cost of acquiring an aircraft, individuals and businesses that decide to purchase an aircraft rarely have the cash to purchase the aircraft outright, or they may decide other reasons, for example, tax implications, demand that they finance the purchase of the aircraft.  As a result, it is very common for purchasers of aircraft to make such purchase with financing from a third-party.  Although there are many financial institutions that are willing to finance aircraft, not all of these institutions have specific experience with aircraft financing, which experience could help assist with the efficient processing of the aircraft loan; therefore, buyers of aircraft should contact aviation-experienced financial institutions, in addition, to other potential lenders, to determine which institution best fits with the purchaser's needs.
There are many factors, such as size of the aircraft, amount of the purchase being financed and operational goals of the purchaser, that influence the complexity of any aircraft finance transaction.  That being said, the following links provide a general overview of a typical aircraft financing transaction; however, this information is not a substitute for legal advice, and any party considering entering into an aircraft financing transaction should consult with legal counsel.  Please contact the BULLEIGH LAW FIRM, if we can be of assistance.
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